Which agency is responsible for regulating Red Flags?

The Federal Trade Commission (FTC) is responsible for regulating Red Flags as part of its mandate to protect consumers from unfair or deceptive practices. Specifically, the FTC enforces the Red Flags Rule, which addresses identity theft and requires financial institutions and creditors to implement identity theft prevention programs. Under this rule, organizations must have protocols in place to identify potential identity theft indicators, or "red flags," and take appropriate actions to prevent fraud.

The Red Flags Rule was established as part of the Fair and Accurate Credit Transactions Act (FACTA) and applies to various businesses, particularly in the financial sector, to ensure they proactively mitigate the risks associated with identity theft. The FTC’s role is crucial in setting guidelines for compliance and providing oversight to ensure entities adhere to these regulations.

While other agencies like the Consumer Financial Protection Bureau (CFPB), Federal Reserve Board (FRB), and Office of the Comptroller of the Currency (OCC) play significant roles in different aspects of financial regulation, the specific regulation of Red Flags, particularly in the context of identity theft prevention, falls under the jurisdiction of the FTC.